Why Financial Literacy Matters
Financial literacy is essential for economic empowerment, equipping individuals with the knowledge and confidence to navigate their personal finances, including managing loans and mortgages, handling credit, and making informed investment decisions. When individuals understand the financial mechanisms to budget, save, and invest wisely, they are better equipped to secure their own financial futures and build lasting intergenerational wealth.
iGrad, product owner of the iGrad and Enrich platforms, is a leading financial technology company that operates under the Aztec Software family of brands. We are passionate about the financial wellness of our platform users. We strive to close knowledge gaps, which helps more community members make smarter spending decisions and avoid costly pitfalls. Aztec’s financial literacy platforms offer easy-to-understand materials and inform adults about key financial decisions that can impact their long-term economic equality and prosperity.
While financial literacy is crucial for personal and economic well-being, financial education remains a challenge across the U.S., affecting individuals of all ages and backgrounds. A 2024 study by the TIAA Institute reports that only 48% of U.S. adults are financially literate, while a 2023 survey by the FINRA Investor Education Foundation found that just 34% of U.S. adults could correctly answer most basic financial questions—underscoring significant gaps in financial knowledge nationwide.
These knowledge gaps contribute to issues like high levels of debt, poor credit management, and lower rates of home ownership. The gap in financial literacy widens among marginalized minority groups, who—according to the National Endowment for Financial Education—face greater challenges accessing resources and financial education compared to their peers. For example, low-income and predominantly underrepresented high schools in the U.S. are three times less likely to offer mandatory personal finance courses. Financial illiteracy can contribute to intergenerational wealth gaps, with up to half of children raised in poverty remaining below the poverty line as adults. While the underlying challenges of intergenerational poverty are complex, financial education plays an important part in addressing this problem.
Research on economic prosperity consistently acknowledges that financial literacy pays substantial dividends. A 2023 study published by Cambridge University Press highlighted that individuals with strong financial literacy skills not only exhibit better saving habits but also manage debt more effectively and make more educated investment choices –ultimately leading to improved long-term financial stability. Similarly, the Journal of Educational Research and Practice found that families and individuals with robust financial education are more likely to set long-term financial goals and can better prepare for their financial futures. These findings note how financial literacy can transform lives and foster a proactive approach to money management, and thereby the opportunity for financial literacy platforms to do the same.
Aztec is dedicated to closing knowledge gaps and empowering individuals with the financial knowledge needed to build secure, prosperous futures. By partnering with employers’ higher education institutions, and investment advisors, Aztec equips learners with the tools to make informed financial decisions, improve money management skills, and achieve long-term financial wellness. To do so, Aztec offers a specialized financial literacy platform which enables companies to provide their employees with personalized financial coaching. Aztec’s platform covers key financial literacy concepts including navigating student loans and borrowing as well as more complex financial topics like investing. This comprehensive, easy-to-use and customizable financial wellness platform advances positive financial behavior among enrolled platform users. A Behavior Change Study by iGrad found that over a 12-month period, users experienced a 32% increase in alignment with their financial goals, a 55% increase in average savings balance and a 28% increase in the number of users able to complete monthly credit payments.
Spotlight: Promoting Financial Literacy for Students
Financial decisions made by young people can significantly shape their long-term financial well-being. Financial choices, from managing student loans to budgeting for daily expenses, can compound over time, impacting future prosperity. A 2022 Student Voice survey from Inside Higher Ed found that 77% of students surveyed would have student loan debt after graduation but that nearly half were unaware of the loan repayment requirements. The Journal of Educational Research and Practice also found that supporting student financial literacy improves immediate money management and lays the groundwork for sustained financial well-being. As undergraduate students prepare to enter the job market, these studies underscore how financial education can help students better navigate complex financial landscapes, leading to smart decisions that can yield long-term benefits.
At Aztec, we understand that empowering students’ financial literacy is essential for building a secure financial future. Our solutions are tailored specifically for student users, providing clear, practical resources on topics like student loans, budgeting, and credit management. By focusing on real-life challenges that young people face, and engaging school staff, parents, and alumni as key advocates for their needs, we combine institutional support for students with the educational resources needed to overcome financial hurdles and set themselves up for success. iGrad’s analysis of college administrators finds that students on campuses with a financial literacy program were less likely to borrow the maximum student loan amount awarded when compared with their peers at institutions without a program in place, reducing student debt burdens and demonstrating the impact of financial literacy education.
Spotlight: Promoting Financial Literacy for Vulnerable Populations
For many vulnerable populations, financial literacy is not just a skill—it’s a pathway to a more secure future. Low-income individuals, justice-involved groups, persons with disabilities, and minority communities face unique systemic challenges that often limit access to financial education.
- A 2024 Credit Sesame survey found that 65% of marginalized non-White respondents confirmed they never received financial education compared to 41% of White American respondents.
- The National Endowment for Financial Education has published extensive research on the importance of equity in financial education, underscoring that effective financial education can empower marginalized and vulnerable populations to make informed financial decisions.
- The National Education Association revealed that the absence of structured personal finance instruction frequently leaves young people from disadvantaged groups unprepared for real-world challenges, perpetuating cycles of economic hardship.
These findings showcase the critical need for accessible, targeted financial education that meets the distinct needs of historically disadvantaged groups.
Aztec remains committed to addressing the financial education gaps that leave vulnerable populations behind. We understand disadvantaged groups often face systemic barriers to accessing traditional financial services and design our programs to be digestible and accessible for a broad audience. Aztec partners with institutions involved with financially vulnerable groups, including low-income populations, justice-involved users and minority demographics. By providing clear, actionable advice and resources to these parties, we help fill a market gap and positively impact disadvantaged groups by empowering them to navigate financial challenges.
Advancing Financial Literacy in Your Organization
Addressing financial illiteracy is more than a moral imperative, it is a strategic opportunity for employers, education institutions and other organizations. By providing financial education resources to students, employees, or customers, organizations can drive both meaningful social impact and long-term business success. For Aztec’s customers, investing in financial literacy solutions is not only about making a positive impact, it is also about supporting your constituents’ needs. By integrating financial education into business and education operations, Aztec’s customers strengthen their brand and value proposition, and improve user acquisition and retention.
Aztec’s comprehensive financial literacy solutions can propel your organization forward. Discover how our financial wellness program delivers personalized financial wellness coaching, essential money-management skills, and offers interactive, instructor-led training for financial service providers and businesses. With these tools, Aztec not only bridges educational divides but also champions economic equality by advancing financial education for all. Now is the time to empower your organization and advance a financially inclusive future for all members.
Colleges, universities, employers, and financial institutions contact us about how to implement a financial literacy program at your organization.
